Additionally, Dawson said the oversaturation of the market has made it harder to maintain competitive wages for hospitality workers.
Gaëlle Laforest, the general manager at Ajja, a Mediterranean restaurant in Raleigh, said Ajja has taken steps to professionalize roles by offering a shared tip pool and wages above the minimum wage.
The Carolina Inn has made diversity and inclusion a central part of its workforce strategy, aiming to create an environment where everyone feels welcome, Dawson said. She said the hotel’s efforts to prioritize its employees are reflected in the average length of employment, which ranges from five to eight years — much higher than the hospitality industry’s average of about 18 months.
“I always say it’s about the people,” Dawson said. “Without the people, you can’t make the business run.”
Laforest said there are issues with making hospitality careers as attractive as other industries, so they attempt to offset the challenges by providing benefits and prioritizing mental health support for employees.
There has also been a significant impact from increasing prices on everything ranging from seafood to disposable takeout boxes, she said.
“Food costs are rising, and we’ve only touched the surface on the new tariffs that are coming into play [which], no doubt, will have more of an effect on us, and we’re kind of going to have to wait and see,” Laforest said.
Dawson said the surge in competition has made it difficult for hotels to pass on these increased costs to consumers without risking a drop in business.
To navigate these challenges, businesses are investing in technology and sustainable practices. Laforest said Ajja has adopted portable handheld devices for its point-of-sale system, which improves service efficiency by allowing staff to place orders tableside.
Similarly, Dawson said the Carolina Inn has embraced green initiatives to adapt to shifting consumer expectations.
“Our overwhelming goal right now is we want to make sure that we are representing the culture around us,” she said.
@DTHCityState | [email protected]
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